Hiscox (HSX) Q3 2024 TU earnings summary

Executive summary

• Insurance contract written premiums reached $3,872.5 million, up 3%, driven by retail and disciplined capital deployment in Re & ILS.

• Investment income was $346.6 million with a 4.3% year-to-date return, supported by strong interest income and favorable bond portfolio movements.

• Large natural catastrophe losses and claims were within expectations despite an active environment.

• Strategy focuses on sustainable, less volatile returns and growth in attractive market segments.

• Surplus capital is planned to be returned to shareholders after the year-end Board decision.

Financial highlights

• Group ICWP increased by $113.1 million year-over-year to $3,872.5 million.

• Net investment result for the first nine months was $346.6 million, a 4.3% return year to date.

• Group invested assets stood at $8.4 billion as of September 30, 2024.

• Reinvestment yield on bonds decreased from 5.2% to 4.4% by September 30, with a duration of 1.9 years.

• Natural catastrophe claims and overall claims experience for the first nine months are within expectations.

Outlook and guidance

• Retail growth expected to improve in Q4, supported by new distribution initiatives and digital partnerships.

• Positive outlook for January 2025 renewal rates in Re & ILS, reinforced by recent hurricane impacts.

• Attractive market conditions persist in big-ticket businesses; capital will be deployed where profitable growth is available.

• Surplus capital to be returned to shareholders after year-end board decision.

• London Market expected to see positive growth in 2025, with continued discipline in D&O and cyber.